(10-2) IRR A project has an initial cost of $52‚125‚ expected net cash inflows of $12‚000 per year for 8 years‚ and a cost of capital of 12%. What is the project’s NPV? (Hint: Begin by constructing a time line.) What’s the project’s IRR? NPV = Cash Flow in Period n/ (1 + Discount Rate)n NPV = $52‚125 + 12‚000/(1 +.12)8 = 4‚846.60 12‚000/(1 +.12)7 = 5‚428.19 12‚000/(1 +.12)6 = 6‚079.58 12‚000/(1 +.12)5 = 6‚809.13 12‚000/(1 +.12)4 = 7‚626.21 12‚000/(1 +.12)3 = 8‚541.35 12‚000/(1 +.12)2 = 9‚566.33
Premium Net present value Internal rate of return
FINANCE 2 ASSINGMENT 2011-2012 Nikesh Hindocha (10044607) Part A. Introduction As part of my assignment‚ I have been asked to discuss the following statement “Mergers and acquisitions can be value destroyers or value creators”. A merger can be defined as when two equal businesses in terms of profit margin and status‚ combine in order to become one legal entity. Initially‚ the fundamental reason for this merge is to produce a company that is worth more than the sum of its parts
Premium Mergers and acquisitions
Finance and Business Finance With the gradual progress of society & civilization and the development of science and technology‚ the scope of trade and commerce has also increased. Hence‚ the product-market has to cope with diverse competitions. To make profit in this competition‚ a businessman has to utilize his capital efficiently through proper planning so that the cost of production or selling could be kept minimum. Hence‚ a business firm can maximize its profit. For that purpose‚ every business
Premium Finance
..........................................!2! 2. Literature review and conceptual framework!..........................................................................!3! . 2.1 Thøgersen (2000) – Psychological determinants of paying attention to eco-labels in purchase decisions!......................................................................................................................................!3! 2.2 Cognitive dissonance and Attitudes!........................................
Premium Cognition Cognitive dissonance Decision making
2. What kind of entrepreneurial venture is Nau? Samaan thinks it’s a social entrepreneurial venture and that it’s a team of entrepreneurs that are in it to win it. The mentioned company was the partnership firm between the topnotch designers from well-known companies. The individuals were carrying the same basic idea‚ the business knowhow and finally dreamt of an organization of their own which would let then showcase their personal skills and knowledge. Nau sells expensive outdoor-type clothing
Premium Corporate social responsibility Social responsibility Charitable organization
range of sources of finance available to Fort Sport Ltd. These can include raising funds through a combination of finance areas. Please identify at least three sources. Fort Sport Ltd is a small private company who began trading in April 2013. The company supplies fitness products online to the public and specialising in mid range sporting goods and equipment. In 2014‚ it wishes to increase its activity in the market and as such need to identify a variety of options for finance. As a manager of
Premium Balance sheet Generally Accepted Accounting Principles Financial ratios
Ecotourism is defined as "Responsible travel to natural areas that conserves the environment and improves the well-being of local people. The basic principles and good practices of ecotourism are slowly beginning to spread. Even major international hotel chains‚ tour operators and attraction providers are starting to adopt environmentally responsible practices‚ such as recycling‚ use of renewable energy sources‚ water-conservation schemes and safe waste disposal Ecotourism theoretically means travel
Premium Environmentalism Natural environment Environment
and Employment Spring 2013 Professor: Dr. Davood Taree Email: dtaree@rbs.rutgers.edu Office hours: MW: 1:30- 2:30 PM Course Information: Course Num.: Eco 212 Location: 2N 219 Course Description: This course examines the economy at the macro level in the long run‚ this would simplify learning Macroeconomics. Attention is given to
Premium Inflation Supply and demand Monetary policy
consequently (University of Phoenix‚ 2010). Team C is responsible for working capital management for the company and has come up with an alternate working capital solution and a plan to manage Lawrence ’s cash position in the forthcoming weeks. This paper will discuss the risk and contingencies associated with the alternate working capital solution. Performance measures will be discussed to show it will be used to evaluate and implement Team C recommendations for Lawrence Sports. Working Capital Policies
Premium Inventory Working capital Asset
Academy of Management Review 2006‚ Vol. 31‚ No. 1‚ 132–152. ENTREPRENEURIAL ACTION AND THE ROLE OF UNCERTAINTY IN THE THEORY OF THE ENTREPRENEUR JEFFERY S. MCMULLEN Baylor University DEAN A. SHEPHERD Indiana University By considering the amount of uncertainty perceived and the willingness to bear uncertainty concomitantly‚ we provide a more complete conceptual model of entrepreneurial action that allows for examination of entrepreneurial action at the individual level of analysis while remaining consistent
Premium Entrepreneurship Joseph Schumpeter Entrepreneur